Ford Is Working On An All-electric Affordable Vehicle That'll Compete Directly With The Tesla Model 3 And Model Y

Good morning! It's Thursday, April 2, 2026, and this is The Morning Shift, your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, Ford CEO Jim Farley says nan automaker is moving connected an affordable car to rival nan Tesla Model Y and Model 3, an car manufacture group wants nan U.S. to driblet an 18-cent state tax, Mercedes-Benz isn't taking immoderate benignant of EV off-ramp and Hyundai is adjacent to trading top-trim Palisades again.

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The world of electrical vehicles is murky astatine champion correct now, but that isn't stopping Ford and CEO Jim Farley — nan $27 cardinal man — from moving guardant pinch a task meant to return connected nan mighty Tesla Model Y and Model 3. At this point, you're astir apt reasoning to yourself, "wait, isn't nan Mustang Mach-E a Model Y competitor?" Well, why don't you conscionable unopen up? This is apparently going to beryllium an all-new car that'll tally connected Ford's UEV platform.

The Mach-E has ever done reasonably good erstwhile it comes to EV sales. In 2025, Ford sol 51,620 of nan electrical crossovers, which isn't bad. However, that number was dwarfed by nan estimated 172,800 Model 3s and 317,800 Model Ys Tesla sold, according to Car and Driver. Obviously, Ford wants a bigger portion of nan pie. From Ford Authority:

We'll person an all-electric, affordable conveyance to compete pinch Model Y and Model 3," Ford CEO Jim Farley said during a caller quality connected nan Spike's Car Radio podcast.

[...]

These comments travel a spot aft nan executive didn't norm retired nan return of a Ford sedan astatine immoderate constituent successful nan future, 1 that he besides said could beryllium "a rear instrumentality thrust performance, precocious capacity affordable sedan," albeit, 1 that utilizes axenic electrical powerfulness and would perchance beryllium underpinned by its Universal EV Platform.

As Ford Authority antecedently reported, nan UEV level tin support up to 8 assemblage styles, including a compact crossover, mid-size crossover, a three-row crossover, pickup, cargo van, and rider van. Ford's early UEV timeline reportedly consists of some two- and three-row SUVs, a subcompact and larger sedan, and a van, successful summation to nan mid-size pickup group to debut successful 2027 for nan 2028 exemplary year.

Farley besides said connected nan podcast astir Ford's upcoming all-hybrid lineup (yes, that includes nan Bronco) that'll see extended scope electrical vehicles for things for illustration towing. Still, he says nan institution isn't giving up connected EVs altogether, but it is focusing chiefly connected this hybrid pivot.

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The caput of a group that represents astir each awesome automaker is calling connected nan national authorities to suspend an 18.4-cent per gallon tax connected gas. In its place, they want a conveyance interest to salary for roadworthy repairs. The Alliance for Automotive Innovation represents BMW, Bugatti, Ferrari, Ford, GM, Honda, Hyundai-Kia, Jaguar-Land Rover, Mazda, McLaren, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Stellantis, Subaru, Toyota, VinFast, Volkswagen and Volvo, on pinch a slew of different suppliers. Its head, John Bozzella, said successful a connection that nan authorities should reside nan expanding financial shortfalls successful nan road spot nosy by imposing a azygous interest connected each conveyance based connected weight.

As much folks bargain electrical vehicles and much fuel-efficient cars, nan state taxation — which hasn't been raised since 1993 — hasn't been capable to support up pinch roadworthy repair requirements. Since it's not indexed for inflation, nan taxation has mislaid much than 60% of its worth successful existent terms. From Reuters:

Bozzella said nan interest would beryllium collected for illustration ​a registration fee. "This argumentation would guarantee each conveyance connected nan roadworthy contributes thing to ​maintaining America's proscription network," Bozzella said. "Those driving older, little fuel-efficient vehicles aliases who recreation agelong distances ‌bear ⁠the financial burden. That's not fair."

Since 2008, much than $275 cardinal – including $118 cardinal from nan 2021 infrastructure rule – has been shifted from nan wide money to salary for roadworthy repairs.

Many Republicans want to enforce a interest connected electrical vehicles to thief salary for roadworthy ​repairs.

Last year, House Republicans ​proposed a caller $250 ⁠annual interest connected EVs and $100 for hybrid EVs but it was not included successful a monolithic taxation and spending bill. The existent ​five-year aboveground proscription rule expires connected September 30.

Some states complaint ​fees for ⁠EVs to screen roadworthy repair costs. Some Republican senators successful February 2025 projected a $1,000 taxation connected EVs for roadworthy repair costs.

Most gross for federally funded roadworthy repairs is collected done ⁠diesel and ​gasoline taxes, which EVs do not pay.

While it does sound unfair that EV drivers get distant pinch a comparable roadworthy repair tax, asking them to salary anyplace betwixt $250 and $1,000 is beautiful damn wild. The Electrification Coalition, an EV defense group, said that moreover $250 was unfair because nan mean gas-powered conveyance will costs its proprietor astir $88 per twelvemonth successful national state taxes.

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Mercedes-Benz is bucking nan inclination of automakers canceling their upcoming electrical vehicles, truthful nan German automaker still plans to present aggregate EVs successful nan U.S. complete nan adjacent 3 years. They see 3 AMGs, nan electric GLC crossover and an electrical E-Class sedan. It's an breathtaking time, I'll show you what.

While I'm personally excited for these cars, I'm not judge nan institution wholly is, arsenic comments from its U.S. CEO make it sound much for illustration nan institution has been hamstrung into building them astatine this point. It's why nan automaker is adopting a acold much mixed powertrain strategy for nan U.S. than it different would have, meaning it'll waste gas, hybrid and electrical versions of nan aforesaid cars. From Automotive News:

Mercedes-Benz USA CEO Adam Chamberlain said bailing connected EVs is not an action fixed nan stringent authorities mandates nan automaker has to comply pinch overseas.

"There is nary choice" globally, Chamberlain said, citing Europe's request that EVs relationship for half of vehicles sold by 2030 and China's 60 percent target.

Instead, Mercedes will adopt a pragmatic powertrain strategy successful nan U.S., wherever user liking has cooled pursuing nan elimination of a national taxation credit.

The automaker has competitively priced EVs but will not unit nan transition, Chamberlain said.

[...]

"Let nan customers choose," nan executive told Automotive News astatine an arena here.

Some Americans still request EVs contempt nan nonaccomplishment of national incentives, Chamberlain said, though take is concentrated successful pockets. Nationally, 14 percent of consumers opportunity they would earnestly see an EV for their adjacent vehicle, pinch liking rising to 28 percent successful California, he said.

Mercedes says it expects EVs to relationship for astir 5% of U.S. unit income successful 2026, but that's mostly owed to constricted supply. It's presently maximizing accumulation of nan electric CLA and GLC to meet stronger request successful in Europe and China. Because of that beardown demand, conscionable 200 electrical CLAs person reached our shores frankincense far, which is very annoying.

Hopefully that'll alteration soon, because the electrical CLA is simply a existent prima of a small sedan.

Andy Kalmowitz / Jalopnik

Hyundai says its conscionable days distant from resuming income of nan Palisade Limited and Calligraphy. The automaker deed nan 2 apical trims of nan three-row crossovers pinch a stop-sale past period aft a two-year-old successful Ohio was crushed to decease by nan Palisade's electrical rear seat.

The toddler died erstwhile nan second- and third-row powerfulness folding seats grounded to observe her aft nan fastener to fold them was pressed. From Automotive News:

"First and foremost, our hearts and deepest sympathies spell retired to nan family. It was a existent calamity successful position of what happened," Parker told reporters April 1 connected nan company's monthly income call.

[...]

"We took speedy action, issued an contiguous stop-sale and recalled each of nan units that were successful operation. Within nan adjacent respective days we are going to beryllium issuing a method work bulletin for nan repair," Parker said. "We should beryllium capable to get powerfulness seats disconnected extremity waste wrong a matter of days, astir apt little than a week."

The callback included 68,500 2026 vehicles successful nan U.S. and Canada.

The partial stop-sale connected a cardinal conveyance for illustration nan Palisade was a ample contributor to Hyundai's 3.4% March income decline. Overall, Pali' income were down 23% past period to 9,075 vehicles from 11,742 vehicles successful February.

Kia has besides recalled 568 examples of nan Telluride — nan Palisade's mechanical copy — for nan aforesaid issue. All of them are hybrid SX Prestige and X-Line SX Prestige models, according to Edmunds.

History.com

On this time successful 1992, mob leader John Gotti was convicted of murder. I'm not present to get into nan full "Teflon Don" point aliases what it meant for organized crime erstwhile he went down. What I americium present to talk astir is that his condemnation led to 1 of nan champion TV interviews/videos ever put connected nan internet.

I mean, it's difficult to find a amended relationship astir a convicted slayer than:

"He was nan champion feline around."

"What astir nan group he murdered?"

"What murdaaaa?????"

Lost successful that interaction, though, is my favourite portion of nan video, which is nan guy's buddy softly adding "they say he murdered people." It's genuinely art.

Anyway, if you want to really study much astir Gotti and this trial, caput complete to History.com.

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Some of you doofuses astir apt thought President Trump's primetime reside to nan federation past nighttime would thief to easiness substance prices. Au contraire, mon frère. WTI lipid futures person jumped astir 10% successful 1 time to astir $110 per barrel, and it's a astir identical communicative pinch Brent Crude prices, which are up astir 8% and overing astir $110.

All of this is to opportunity that our march past nan $4 per gallon rubicon is good underway, arsenic nan mean value of a gallon of state roseate 2 cents overnight from $4.06 to $4.08, according to AAA. With nan President saying we'll beryllium stuck this warfare for astatine slightest "two aliases 3 weeks" and a deficiency of immoderate existent scheme to repoen nan Strait of Hormuz, I don't deliberation things will alteration anytime soon.

If you were wondering, nan past clip state was complete $4.08 was backmost successful August of 2022, according to information from nan Energy Information Administration, and nan mean value of a gallon of state is now up $1.10 — aliases astir 31.2% — since nan warfare first collapsed retired connected February 28, erstwhile it was $2.98.

Here's wherever nationalist mean prices guidelines correct now, according to AAA:

AAA